Mortgage lending for house purchases surged to a new record during August as consumers' confidence in the property market remained strong.

Mortgage lending for house purchases surged to a new record during August as consumers' confidence in the property market remained strong.

The Council of Mortgage Lenders said a total of &#xA3;11.5bn was advanced to people buying a new home during the month, up from the previous record of &#xA3;11bn set in July.

At the same time loans for house purchase (as opposed to remortgaging) accounted for 48pc of all lending.

This represented the highest proportion since December last year, and was well up on April and May's 35pc.

Overall, total mortgage lending eased slightly during August to &#xA3;23.7bn, marginally down on July's record &#xA3;25.1bn, but the second highest figure ever.

CML director general Michael Coogan said: "The latest figures continue to tell a story of a housing and mortgage market that is buoyant but difficult for first-time buyers to enter. But the swing back in house purchase lending supports the view that the housing market saw a resurgence in confidence following the end of the war in Iraq, further amplified by the unexpected interest rate cut in July."